BLESSED IS HE WHO BELIEVES: DOUBTFUL PROSPECTS FOR BITCOIN PRICE GROWTH

#BTC The first blockchain in the decentralized finance field was Bitcoin, which laid the foundation for the rapid development of the cryptocurrency industry. However, by 2014, the technology of Bitcoin was already outdated in terms of practical application, which led to low network throughput. In December 2017, if you sent bitcoin to another address, the transaction could take a whole day or even longer to confirm.

We owe Bitcoin for the fact that blockchain technology began its multifaceted development and penetration into our everyday life. However, the mechanisms of decentralized finance require high transaction speeds, which the Proof-of-Work (PoW) protocol, on which Bitcoin operates, cannot provide.

Proof-of-Work (PoW) is a blockchain transaction confirmation protocol that uses computer algorithms to verify and confirm transactions. It allows blockchain participants to verify and confirm transactions using computer algorithms that require significant computational resources, making it inefficient and expensive. Given that the potential for improving this blockchain is limited, the prospects for using Bitcoin as a financial unit are highly questionable.

Realizing this and wishing to maintain the outdated and archaic Bitcoin blockchain platform in the wave of popularity and bring some practical value, experts began to call Bitcoin “digital gold”. Emphasizing the deflationary nature of this cryptocurrency asset. But this thesis is also doubtful.

The growth rate of Bitcoin price is steadily decreasing. Mining profitability is also approaching zero. Volatility continues to remain at a high level. There are serious cyclical downturns, which led to a significant outflow of investors into stablecoins. Logic: not up to fat, to be would live. It's better to at least somehow preserve funds, rather than invest in a risky asset - and lose. New modern blockchain projects are also squeezing Bitcoin.

At the same time, it is necessary to take into account that after 2017, Bitcoin actively pumped up due to the issuance of unsecured currency and the injection of stablecoins, primarily USDT, into circulation, as well as the influx of money from large investment funds that joined the speculative game. This led to a concentration of a large amount of bitcoins among major holders. About 30% of the asset was concentrated among 1% of holders. This is a threatening situation. Can you imagine what will happen if these whales suddenly start selling their holdings? The real backing of many stablecoins, which mainly supported the rise in the price of Bitcoin in recent years, is highly doubtful.

That's why manipulators of the cryptocurrency market actively promote information about the supposedly upcoming further rise in the price of Bitcoin and tell sweet tales of its eternal value. The unenlightened crowd will swallow it all! After all, you need to drive a mass of people into buying at maximum prices who are biting on false advertising, and then jump out themselves. Large players are currently selling Bitcoin in small portions to prevent the price from collapsing, and periodically pushing it up, accompanied by optimistic informational noise.

It is not difficult to guess what will happen when the gatekeepers of this business get rid of Bitcoin, when a transfer of funds to other, more technologically advanced cryptocurrency assets occurs. Especially since rumors about the imminent arrival of the altcoin season are persistently being stirred up, which is quite logical. Moreover, Bitcoin's trading volume dominance has already dropped to 50% and tends to further decline.

However, maybe it's not all so sad, bitcoin will rejuvenate again, gather energy for growth, and delight those who missed the beginning of its glorious, victorious march across the planet Earth. The hopes of idealists never die, and you can continue to indulge yourself with beautiful illusions that the Wall Street sharks will remain the holders of "digital gold" forever, and you will bask in luxury with them in the club of happy and carefree billionaires, holders of "digital gold".

#блокчейн crypto #финансы economics #business